BLOOMBERG ENTERPRISE SOLUTIONS Risk Solutions Beyond the Desktop

April 19th, 2016

BEYOND THE TERMINAL

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ENTERPRISE

SOLUTIONS

Data

Regulatory Solutions

Data MGMT

Pricing / Valuation

Reference Data

Feed: - Security Master

- Prices

- Corporate Actions

- Legal Entity

- Derived / BBG

Calculated

- Fundamentals &

Estimates

Integrate into both

proprietary & 3rd

party applications

/ systems

Vendor neutral

data management

system

Data Governance: - data cleansing

- quality control

- golden copy

creation

Full data lineage

& audit trail

Report generation

with advanced

data visualization

AGENDA

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Pricing / Valuations

1. Independent Valuations

a. Cash Bonds

b. Derivatives & Structured Products

Regulatory Solutions

1. Liquidity Assessment

2. Fund Look-Through

INDEPENDENT VALUATIONS

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BGN BVAL

Market Consensus Price BGN + Model Price

(when there is no active market)

INDEPENDENT VALUATIONS

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BVAL

Market Data

Method-ology

BVAL Score

Cash Instruments Market Data

- Access to a larger pool of

contributors vs BGN

Methodology - In the absence of any direct

market observations, will look at

comparable bonds from the same

issuer, industry, credit rating etc

BVAL Score (Metadata) - Measures the relative strength of

the market inputs used

- It does this by looking at:

1. # of market participants

2. Standard deviation

INDEPENDENT VALUATIONS

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Premium Data

• Get the Data - Volatility Surface - Curves - FX Correlation

• Benefits - Cleansed Sources, instruments, and methodologies

Valuation Tools

• Get the Tools - Calculators - Model Selection

• Benefits - Offer both standard templates and customized scripts - Risk analysis

Financial Engineers

• Get the People - Fully outsourced valuation process

• Benefits - Apply best market practice - Price challenges & audit support

More

Control

Less

Control

Derivatives & Structured Products

INDEPENDENT VALUATIONS

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Value Proposition

1. Multi-Asset Class Coverage

2. Transparent Methodology & Results

3. Data Consistency with BBG Terminal Users

4. 24 Hour Service & Access to Financial Engineers

LQA

LIQUIDITY ASSESSMENT

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Inputs include:

- Trade volume

- Price

- Bid/Ask spread

- Price volatility

- Turnover

When there is a market When there isn’t

Trade Data

Cluster Analysis

Explanation in

next slide

LIQUIDITY ASSESSMENT

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Cluster

Analysis

LIQUIDITY ASSESSMENT

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Outputs

Probability of selling

a certain volume at

a specific price

Expected cost of

liquidation (market

impact)

Number of days to

liquidate (TTL)

Liquidity Score

FUND LOOK-THROUGH

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Funds

Open End

Fund of Funds

ETFs

Closed End

Holdings Data

- Fund Constituents

- Weights

- Security Type

Data on 70,000 fund portfolio’s with 93,000 institutional investors, and

historical data dating back to 1999

Data is sourced directly from issuers, fund companies, custodians, stock

exchanges, public share registries, and 13F’s

OTHER SERVICES…

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● IFRS 9

− Automation of SPPI test

● Solvency II

− Data mapping for Pillar 3 rerporting

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The BLOOMBERG PROFESSIONAL® service and BLOOMBERG Data (the “Services”) are owned and distributed by Bloomberg Finance L.P. (“BFLP”) in all jurisdictions other

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marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain

functionalities distributed via the Services are available only to sophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP

and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial

instruments by BFLP, BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to “buy”, “sell”

or “hold” an investment. Information available via the Services should not be considered as information sufficient upon which to base an investment decision. BLOOMBERG,

BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION,

BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marks of BFLP, a Delaware limited partnership, or its subsidiaries.

BVAL is a service provided by Bloomberg Finance L.P. and its affiliates. BVAL valuations do not express an opinion on the future or projected value of any security and are not

research recommendations (i.e., recommendations as to whether or not to “buy”, “sell”, “hold”, or to enter or not to enter into any other transaction involving any specific interest) or

a recommendation as to an investment or other strategy. No aspect of the BVAL valuation or other data is based on the consideration of a customer’s individual circumstances and

information available via BVAL should not be considered as information sufficient upon which to base an investment decision. You should determine on your own whether you

agree with the BVAL valuation. BVAL is offered where the necessary legal clearances have been obtained. BVAL should not be construed as tax or accounting advice. Employees

involved in the BVAL services may hold positions in the securities included in the BVAL services.

Bloomberg Finance L.P. and its affiliates, in providing the BVAL services, believe that the information it uses comes from reliable sources, but do not guarantee its accuracy.

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